Pertinent Provisions under the 2009 RRPC
Resource Person: Atty. LITO Q. MARTIN Director III Commission on Audit


orient AGAP convention participants on the provisions of COA Circular No. 2009-006 dated September 15,2009 on RRSA & 2009 RRPC which is effective October 28, 2009.

BACKGROUND/Previous Issuances COA Circular 81-156 Restating the Requirements for the Use of the CSB and Providing Guidelines on Its Issuance Including the Accounting Treatment Thereof .

Previous Issuances … COA Circular 85-156B Prescribing the Use of the Manual on CSB • COA Circular 94-001 Prescribing the Use of the 1993 Revised Manual on CSB .

1/31/06 Responsibility to Issue NS/ND/NC Arising From the Settlement of Accounts and Audit of Transactions .Previous Issuances … COA Memorandum 2002-053 Guidelines on the Delineation of Auditing and Adjudication Functions COA Resolution 2006-001.

Chapter I - Introduction .

Title The set of rules shall be known as the RRSA .Section 1.

Legal Authority Power/authority/duty to examine/ 1. audit/settle all accounts pertaining to revenues & receipts of & expenditures or uses of funds.Sec. Constitution] . [Sec. IX-D. owned or held in trust by. Art. 2 . or pertaining to the Govt. 2 (1).

Establish the techniques & methods required therefore. 3. or uses of govt. Art. Exclusive authority to define the scope of its audit & examination. including those for the prevention & disallowance of IEEUU expenditures. Promulgate accounting & auditing rules & regulations. . IX-D) 2.Legal Authority [Sec. 4. 2 (2). funds & property.

PD 1445) 6. PD 1445) To notify in writing the officer whose accounts have been audited & settled (Sec. 82. RA 7160) .Other Legal Authority … 5. To render accounts by local auditors (Sec. To certify the balances in the accounts of AOs (Sec. 81. 7. 347.

3 .Sec. funds of property accounts not covered. Settlement .Scope of RRSA All accounts audited pertaining to revenues & receipts of & expenditures or uses of govt.

Rules and Regulations .Chapter II General Principles.

to determine the transactions that may be allowed or not allowed.Settlement of Accounts is the process of determining the balance of the account of an AO. thru an audit.  The balance refers to total suspensions.  . disallowances & charges (SDC) which shall be his accountability.

disallowed or charged. .Settlement of Accounts …  Audit shall be done in accordance with LRR (laws/rules/regulations) & standards to determine whether transactions may be allowed. suspended.

2.When to issue an AOM 1. audit decision cannot yet be made due to incomplete documentation or information. . the deficiencies noted refers to financial/operational matters w/c do not involved pecuniary loss.

. . A NS shall be issued indicating the requirements to be complied w/ by the officers concerned. until such requirements are complied with.Auditor’s Adverse Decisions 1.  Suspension of a transaction that needs more requirements. & w/c may result in pecuniary loss to the govt.

improper or irregular unless satisfactorily explained/justified by the responsible officers or until the requirements on matters raised in the course of audit are submitted or complied with .Sec. Definition …  Suspension is a temporary disallowance of a transaction w/c appear illegal. 4.

Sec. . Rule IV of RRPC  NS may be issued for transactions of doubtful legality/ validity/propriety to obtain further explanation or documentation. 4.

for being an IIEEUU. Disallowance of a transaction on expenditure. A ND is issued for the disallowed amount .Auditor’s Adverse Decisions … 2. either in whole or in part.

Auditor’s Adverse Decisions … 3. is not received as a result of under-appraisal/ assessment/ collection. Charge of a transaction when the correct amount of revenue/receipt due the govt. A NC is issued for the uncollected amount .

indicate “Allowed in Audit”. & indicate “amount suspended/ disallowed/ charged” in the documents audited.   If not allowed. . issue NS/ND/NC.Evidence of Audit By appropriate markings in the documents audited  If allowed in audit.

Suggested Post-Audit Stamp POST-AUDITED Transaction Amount : __________ Allowed : __________ Disallowed/Charged/ Suspended : ___________ ND/NC/NS Number : ___________ Dated • Standard size : ____________ is by __ cms • Auditor sign using RED ink .

by persons responsible thru compliance w/ requirements  ND/NC . such as persons liable thru payment.How Notices are Settled NS . condonation. restitution or by other modes of extinguishment of obligation. dation in payment.  .

Notice of Settlement The auditor issue an NSSDC for settled NS/ND/NC .

Updated list of outstanding SDC within 5 days from receipt of request by a retiring/ transferring officer. .Balance of Account  The auditor shall issue :   SASDC within 15 days after the end of each QTR.

Linkages to the AAR Total unsettled SDC at the end of CY as reflected in the 4th QTR SASDC shall be reported in the AAR  Other deficiencies noted as indicated in the AOM shall be included in Part II of the AAR  .

Responsibilities for Audit and Settlement of Accounts .

Responsibilities of Agency Head  Primarily responsible for all govt. Fiscal responsibility rests directly with him.  . funds & property pertaining to his agency.

Responsibilities of Agency Head … 1) a) Ensure that: Required financial/other reports/ statements are submitted by the concerned agency officials in prescribed form and within the prescribed period. Settlement of disallowances/ charges is made within the prescribed period. b) .

d) Appropriate actions are taken on the deficiencies noted as contained in the AOM.Responsibilities of Agency Head … Requirements of transactions suspended are complied with. c) .

.Responsibilities of Agency Head … 2) Initiate the necessary administrative and/or criminal action in case of unjustified failure/refusal to effect compliance with the foregoing requirements by subordinate officials.

.Responsibilities of Agency Head …  Gross negligence in disciplining subordinates who are the subject of repeated adverse audit findings shall subject him to disciplinary action by proper authorities.

Ensure that all employees who are retiring/transferring shall first settle the disallowances & charges for w/c they are liable.Responsibilities of Agency Head … 3) 4) Enforce the COE by requiring the withholding of salaries/other compensation due the person liable in satisfaction of the disallowance/charge. .

Responsibilities of Agency Accountants/Bookkeepers 1. Ensure that reports & supporting documents submitted by the AOs are immediately recorded & submitted to the Auditor w/in 1st 10 days of the ensuing month. .

Ensure that financial records are made accessible at reasonable hours to the auditors when needed.Responsibilities of Accountants … 2. .

funds. financial transactions & resources of the agencies under their respective audit jurisdiction. Rule II of RRPC) To exercise such powers & functions as provided by law & as may be authorized by COA in the audit & settlement of the accounts. .Powers & functions of Auditors (Sec. 3.

Rule IV of RRPC) To maintain complete independence & exercise professional care & be guided by applicable LRR & the GAAAP in the performance of audit work & preparation audit reports . .Role of Auditors  (Sec. 2.

3. which may include physical. analytical & electronic evidences. testimonial. To safeguard this evidence to support his findings. judgments & recommendations. Rule IV of RRPC)   To obtain sufficient evidence to provide an appropriate factual bases for his opinions.Responsibilities of Auditors (Sec. documentary. conclusions. .

ORs.Responsibilities of Auditor (Sec. & supporting documents. Enforce submission of prescribed/ necessary reports of receipts/ disbursements w/ all paid vouchers. 7.3 of RRSA) 1. .

Conduct audit on the abovesubmitted documents covering transactions under the identified audit areas. Prepare. the pertinent NS/ND/NC/AOM/NFD. as a result of audit. . 3.Responsibilities of Auditor … 2.

Prepare the COE for disallowances/charges issued by him for his Director’s signature Serve the NS/ND/NC/ AOM/NFD/COE to persons concerned/responsible/liable. 5. .Responsibilities of Auditor … 4.

13.Responsibilities of Auditor … 6. 7. 24. Monitor the enforcement of COE issued & report to Director the action taken by the agency thereon pursuant to Sec. Issue the NSSDC when there is settlement pursuant to Sec. .

Responsibilities of Auditor … 8. Prepare & transmit SASDC to the agency head & the Accountant pursuant to Sec. Others . 14. 9.

22. 3. 18. 2. Exercise general supervision & review in audit & settlement of accounts.Responsibilities of Director 1. Sign the NFD for decisions rendered pursuant to Sec. . Act on appeals pursuant to Sec.

23. Sign the COE for decisions rendered by him & by the Auditor pursuant to Sec. 5. . Consolidate the SASDC for all auditees under his jurisdiction.Responsibilities of Director … 4.

but not exceeding P10.Payment of Filing Fees 2009 RRPC  Every petition/appeal filed before an adjudicating body/office of COA pertaining to the following cases shall be imposed a filing fee equivalent to 1/10 of 1% (0.000.1%) of the amount involved. .

agency Request for condonation of settled claim or liability except if between govt. except if the claimant is a govt.Filing Fees … a) b) c) d) Appeal from audit disallowance/charge Appeal from disapproval of request for relief from accountability Money claims. agencies .

16. LRF of 1% of filing fee imposed.Legal Research Fund (Section 4. but not lower than P10 shall be collected . as amended. RA 3870. & LOI 1183 dated Dec. 1981)  In addition.

Where to Pay Fees At the Cashier of COA Central Office or Regional Office  if not practicable. may be remitted thru postal money order payable to the Commission on Audit  .

Payment of Fees OR shall be attached to the pleading  If no OR. adjudicating bodies/offices shall not take action thereon .

Chapter III Guidelines in issuance of AOM/NS/ND/NC and SASDC .

internal control or property management which do not involve pecuniary loss.Sec. including for documentary or other information requirements to enable the auditor to make a decision in audit. 8 – AOM & Management Reply The Auditor shall issue an AOM (Form 1) for observation relating to financial/operational deficiencies such as accounting. . 1.

8 . AOM shall be replied to by agency officials concerned w/in 15 CDs from receipt thereof. 3.Sec. AOM is addressed to agency head and officers concerned stating the deficiencies noted and/or requirements to be complied with and requiring a response thereon. Reply … 2. Signed both by the ATL and SA.AOM & Mngt. .

If agency officials failed to reply.AOM and Management Reply … 4. . In case of failure to submit documents/ information needed to reach an audit decision. an NS/ND/NC may be issued after a re-evaluation of those available. the observation shall be deemed accepted and shall be included in the audit report (ML and/or AAR). 8 .Sec.

Sec. 8 - AOM & Mngt. Reply …



The Auditor shall evaluate the agency’s reply/comments and shall inform the agency head and officer concerned in writing of the results of evaluation. The documents/information submitted in response to an AOM may provide basis for the allowance, SDC in audit.

Sec. 9 – Notice of Suspension


The Auditor may issue an NS (Form 2) for transactions of doubtful legality/propriety/ regularity which may result in pecuniary loss of the government to obtain further explanation or documentation.

Sec. 9 – Notice of Suspension …


Addressed to agency head and the Accountant; served on the persons responsible; stated the amount suspended, the reason/s for suspensions, the justification/ explanation/legal basis/documents needed to lift the suspension, and the persons responsible for compliance. Signed both by the ATL and SA.

.Sec. Issued as often as suspensions are made Suspension shall be settled within 90 CDs from date of receipt by the responsible officers. 4. 9 – Notice of Suspension … 3. otherwise. issue the ND/NC. the transaction shall be disallowed/ charged after the Auditor shall had satisfied himself of such action and consequently.

85-55A) and illegal (contrary to law) and unconscionable (unreasonable and immoderate. no man in his right sense would make. 10 – Notice of Disallowance The Auditor shall issue an ND (Form 3) for transactions w/c are IEEU (COA Circ. and those incurred in violation of ethical and moral standards) 1. nor fair and honest man would accept as reasonable. .Sec.

indicated the transaction and amount disallowed. served on the persons liable. Addressed to agency head and the Accountant.Sec. and the persons liable. . 10 – Notice of Disallowance … 2. the reasons for disallowance. the LRR violated. Signed both by the ATL and SA.

Sec. 4. Issued as often as disallowances are made. . Disallowances shall be settled within 6 months from date of receipt by the persons liable. 10 – Notice of Disallowance … 3.

Sec. Amount collected is less than what is due. The Auditor shall issue the NC (Form 4) on the difference of the following. 11 – Notice of Charge (NC) 1. . Amount billed is less than what is due. which are proper audit charge: a) b) c) Amount assessed/appraised is less than what is due.

the LRR violated. and the persons liable.Sec. Addressed to agency head and the Accountant. served on the persons liable. indicated the transaction and amount charged. 11 – Notice of Charge … 2. . the reasons for the charge. Signed both by the ATL and SA.

. Charge shall be settled within 6 months from date of receipt by the persons liable.Sec. 11 – Notice of Charge … 3. Issued as often as charges are made. 4.

ND/NC …  ND/NC shall be adequately established by evidence and the conclusion. recommendations or dispositions shall be supported by applicable LRR. . jurisprudence and the GAAAP.

2) Auditor for record (duplicate).ND/NC/NS/decisions/other orders Shall be prepared in such number of copies as may be necessary for: 1) head of audited agency (original). .

.ND/NC/NS/decisions/other orders  3) agency officials directly affected by the decision and from whom specified action/response is expected.

To each persons liable/responsible. . by registered mail. If several payees.Sec. by the Auditor. thru personal service. who shall be responsible for informing all payees concerned. constitute constructive service to all payees in the payroll. 12 – Service of Copies of ND/NS/NC 1. If not practicable. such as disallowed payroll. service to the Accountant.

Sec. 2. . 12 – Service of Copies … Personal service by: a) delivering personally to the party. b) leaving in his office w/ his clerk or with a person having charge thereof.

with a person of sufficient age and discretion then residing thereon. .Sec. 12 – Service of Copies … c) by leaving at the party’s residence between 8 AM to 6 PM.

if no service is available in locality of either sender or addressee. Ordinary mail. if undelivered. b) at his residence with instruction to the Postmaster to return the mail to sender after 10 days. 12 – Service of Copies … 3. .Sec. otherwise. if known. Register mail by a) sending to the office address of the party.

Sec. 12 – Service of Copies …


Record of date of actual or constructive service for purpose of determining the running of 90 days maturity period of the suspension & the 6 months period to appeal the disallowance/charges. These information shall be included in the Record of COA Decisions (ROCD)

Sec. 13 – NSSDC



The Auditor shall issue the NSSDC (Form 5) whenever a SDC is settled. Addressed to agency head and the Accountant; copy furnished the persons responsible/liable; indicated the NS/ND/NC settled, amount, nature of transaction and mode of settlement. Signed both by the ATL and SA.

Responsibility of Auditor . . . . Under Section 7.3

Auditor shall issue a Notice of Finality of Decision (NFD) to inform the agency head that a decision of COA or its authorized representative has become final & executory, which shall be the basis for recording the disallowance/charge in the agency’s books.

13 – NSSDC … 3. he shall issue the ND/NC.Sec. Settlements a) Suspension – by submission of justification/explanation and/or documentation required and after the Auditor is satisfied that the transaction is regular/legal/proper. . If the Auditor is not satisfied.

for evaluation & advice. 13 – Settlement … Disallowance/charge – i) by payment of the amount disallowed. b) . w/c the Auditor may refer to the General Counsel. the propriety of the settlement.Sec. ii) by such other applicable modes of extinguishment of obligation as provided by law.

.Sec. lifting the same. the ASB. or the CP. 13 – Settlement … b) Disallowance/charge – iii) from a decision of the Director.

. It shall indicate beginning balance for each NS/ND/NC. the NS/ND/NC and NSSDC for the period and the ending balance of the NS/ND/NC. Signed both by the ATL and SA. The Auditor shall prepare the SASDC (Form 6) summarizing the total SDC for the current period.Sec. 14 – SASDC 1.

copy furnished the COA Director concerned. . Issued to agency head & the Accountant within 15 CDs from the end of each QTR. 14 – SASDC … 2. 3. The Auditor’s SASDC shall be the basis for the preparation by the Director’s consolidated quarterly SASDC for his cluster/region showing the total unsettled SDC per auditee.Sec.

Sec. 14 – SASDC … 4. The Sector Ascom shall be furnished copy of the consolidated SASDC of each cluster/region for purpose of national consolidation into a Sector SASDC as an input into a database to be maintained by the ITO showing the total unsettled SDC per Sector. .

extent of participation in the transaction.Liable for Audit Disallowances/Charges 1. a) b) c) d) Determined on the basis of: nature of disallowance/charge.1) .. 16. duties/responsibilities or obligations of officers/employees concerned. amount of damage or loss to the govt. (Sec.

and on the basis of prescribed documents and necessary records. disposed of or transferred in accordance w/ LRR. utilized. expended. .Liability of Public Officers (POs) a) Custodians of government funds are liable for failure to ensure that funds are safely guarded against loss or damage.

. legality and availability of funds or adequacy of documents are liable according to their respective certifications.Liability of POs b) Who certify as to the necessity.

.Liability of POs c) Who approve or authorize expenditures are liable for losses arising out of their negligence or failure to exercise the diligence of a good father of a family.

Liability of POs & Other Persons d) Who confederated or conspired in a transaction which is disadvantageous or prejudicial to the government are liable jointly and severally w/ those who benefited therefrom. .

.Liability of the PAYEE e) Personally liable for a disallowance where the ground thereof is his failure to submit the required documents. and the Auditor is convinced that the disallowed transaction did not occur or has no basis in fact.

Measured by the individual participation and involvement of POs whose duties require appraisal/assessment/ collection of govt. (Sec. 16.2) .Liability for Audit Charges 2. revenues & receipts in the charged transaction.

Liability of persons determined to be liable under an ND/NC 3. COA may go against any person liable without prejudice to the latter’s claim against the rest of the persons liable. . Solidary.

ASB (original) - .exceeding P1 M CP (original) None .None - .DECISIONS AND APPEALS WHAT CASES WHOSE JURISDICTION/ APPROVING OFFICIAL FILING FEE REQUIRED Request for write-off of unliquidated cash advances and dormant accounts receivables - not exceeding P1 M .

robbery.000 for losses.Director due to fortuitous event or(original) natural calamities (no limit) None - - - None .DECISIONS AND APPEALS WHAT CASES WHOSE JURISDICTION/ APPROVING OFFICIAL FILING FEE REQUIRED Request for relief from cash and property accountabilities .Auditor not exceeding P100. arson)] exceeding P100.000 [fortuitous events and natural (original) calamities or acts of man (theft.

None .DECISIONS AND APPEALS WHAT CASES WHOSE JURISDICTION/ APPROVING OFFICIAL FILING FEE REQUIRED Request for relief from cash and property accountabilities .000 for acts of man exceeding P500.None - exceeding P100.000 but not more than P500.000 but not more than P5M (for acts of man) exceeding P5M (for acts of man) - .Director (original) .None - .CP (original) .ASB (original) .

CP (appellate) not less than P10 but not to exceed P10.000 .DECISIONS AND APPEALS WHAT CASES WHOSE JURISDICTION/ APPROVING OFFICIAL FILING FEE REQUIRED Request for COA’s .000 .exceeding P1.000 .000.None Appeals .Director (appellate) .000.not exceeding P1.ASB (appellate) .Do - Do - .1/10 of 1% but .CP (exclusive) concurrence on the hiring of legal consultants and appeals/Motion for Reconsiderations thereto from audit disallowance/charge involving amounts: .

000 .Do .000 .Do - .1/10 of 1% but not less than P10 but not to exceed P10.000 but not more than P500.ASB (appellate) .for acts of God (no limit) .Do - .000 .ASB (appellate) .for acts of man exceeding P100.CP (appellate) .DECISIONS AND APPEALS WHAT CASES WHOSE JURISDICTION/ APPROVING OFFICIAL FILING FEE REQUIRED •Appeals from disapproved request for relief from accountability .For acts of man exceeding P500.

Do - .Do - . except if claimant is a government agency (regardless of amount) •Request for condonation of settled claims or liability except if between government agencies •Approval of private sale of government property in LGUs .DECISIONS AND APPEALS WHAT CASES WHOSE JURISDICTION/ APPROVING OFFICIAL .CP (original) FILING FEE REQUIRED •Money claims.000 .CP (original) .CP (original) .1/10 of 1% but not less than P10 but not to exceed P10.


Sec.  Filing of an appeal will suspend the running of the prescribed period.  If not appealed within the prescribed period shall become final & executory. 17 – Period to Appeal  Any person aggrieved may within 6 months from receipt of ND/NC appeal in writing.  Running of 6 month period shall .

Proceedings before the Director 1) An aggrieved party may file an Appeal Memorandum (AM) from an Auditor’s Decision/ND/ NC to the Director concerned. copy furnished the Auditor. within 6 months from receipt of .

•  Caption – Appellant .Auditor who rendered the decision .Proceedings before the Director appealing Appellee .

Proceedings before the Director

The receipt by the Director of the AM shall stop the running of the period to appeal which shall resume to run upon receipt by the appellant of the Director’s decision.

Proceedings before the Director
Within 5 CDs from receipt of the AM, the Director shall order the Auditor to submit his Answer, copy furnished the appellant, together with the entire records of the case including the EDSE, duly numbered at the bottom of each page.


Proceedings before the Director

The Auditor shall comply w/ the Director’s Order within 15 CDs from receipt. The appellant may file a Reply within the same period from

.Proceedings before the Director 6) The Director shall decide the Appeal within 15 CDs from receipt of the complete documents necessary for evaluation & decision.

Proceedings before the Director 7) The Director may affirm the decision of the Auditor. the case shall be elevated directly to the CP for automatic review of the Director’s Decision.  . modifies or alters.  The dispositive portion shall categorically state that the decision is not final & is subject to automatic review of the CP. If he reverses.

Proceedings before the Director 8) The Director shall not entertain a motion for reconsideration (MR) of his decision. .

19 – Proceedings before the ASB 1) Any person aggrieved by a Director’s Decision involving an amount not exceeding P1 Million may appeal to the ASB within the time remaining of the 6 months period to appeal. .Sec.

thru the Ascom of LSS. copy furnished the Appellant. shall require the Director to submit an Answer.Sec. . 19 – Proceedings before the ASB 2) Upon receipt of the AM. together w/ the entire records of the case including the EDSE. duly numbered at the bottom of each page. the ASB.

The appellant may file a Reply within the same period from receipt of the Answer. .Sec. 19 – Proceedings before the ASB 3) The Director shall comply w/ the ASB’s Order within 15 CDs from receipt.

.Sec. 19 – Proceedings before the ASB 4) The ASB shall decide the Appeal within 15 CDs from receipt of the complete documents necessary for evaluation & decision.

The ASB shall not entertain an MR of its Decision. modify or alter the Director’s Decision. reverse. 6) .Proceedings before the ASB 5) The ASB may affirm.

Proceedings before the CP 1) The party aggrieved by a decision of the Director or the ASB may appeal to the CP by filing a Petition for Review. .

. 3) The CP shall decide within 60 CDs from the date of its submission for decision or resolution.Proceedings before the CP 2) A party aggrieved by a Director’s Decision involving ND/NC exceeding P1 Million may file an appeal to the CP within the time remaining of the 6 months period taking into consideration the suspension of the running thereof.

5) If the account/claim involved in the case needs reference to other persons.Proceedings before the CP 4) A case is deemed submitted for decision/resolution upon the filing of last pleading/brief/memorandum required by COA rules. or party interested. the period shall be counted from the time the last comment necessary to a proper decision is . office.

review the same & render its own decision. .Automatic Review of Director’s Decision a) The CP shall within 60 CDs from receipt of the Director’s Decision & the entire records of the case.

or the said decision is contrary to law. a) b) The MR shall be filed within the remaining of the 6 months period to appeal. or that the evidence is insufficient to justify the decision.MR of CP Decision Only one MR shall be entertained on the basis of new & material evidence. .

Appeal to the SC 1) The party aggrieved may appeal the CP’s decision/order/ruling within 30 days from his receipt. When the CP’s decision/order/ruling adversely affects the interest of any govt. 2) . appeal on Certiorari to the SC in the manner provided by law & Rules of Court.

It is negligence or omission to assert a right within a reasonable time. for an unreasonable length of time. to do that by which by exercising due diligence could or should have been done earlier. warranting a presumption that the party entitled to assert it either has abandoned it or declined to assert it.LACHES  Defined as the failure or neglect.   . Relief has been denied to litigants who. by sleeping on their rights for an unreasonable length of time – either by negligence. not those who slumber on their rights. The laws aid the vigilant. folly or inattention – have allowed their claims to become stale.

2. or the conduct of another which the defendant claims gave rise to the same.ELEMENTS OF LACHES Conduct on the part of the defendant that gave rise to the situation complained of. 1. Delay by the complainant in asserting his right after he has had knowledge of the defendant’s conduct and after he has had an opportunity to sue. .

. Lack of knowledge by or notice to the defendant that the complainant will assert the right on which he bases his suit.ELEMENTS OF LACHES 3. and 4. Injury or prejudice to the defendant in the event relief is accorded to the complainant.

…stale demand.SUPREME COURT RULING: Soliva vs. No.R. . 154017. Intestate Estate of Marcelo M. Dec. G. 2008 …even a registered owner of property may be barred from recovering possession of property by virtue of laches… …The same is not true with regard to laches…. 8. Villaliba.

because to allow such action would be inequitable and unjust to the defendant. but only with the issue of whether or not the plaintiff – by reason of long inaction or inexcusable neglect – should be barred entirely from asserting the claim. CA. No.TEOTIMO EDUARTE vs. G.” (underscoring and emphasis ours) . 1999  “It has been consistently held that laches does not concern itself with the character of the defendant’s title. 121038.R. July 22.

R.EXCEPTION TO THE GENERAL RULE: Durban Apartments Corp. 2005 …the Court may disregard procedural lapses so that a case may be resolved on its merits. No. Dec 14. Catacutan.” . 167136. not defeat. G. A strict and rigid application of the rules that would result in technicalities that tend to frustrate rather than promote justice must be avoided. vs. substantial justice. Rules of Procedure should promote.

March 22. G.R. No.CANDO” . the interest of substantial justice must transcend rigid observance of the rules of procedure. 160741. 2007 Ultimately. Olazo.

R. 2008 It is well-settled that rules of procedure are construed liberally in proceedings before administrative bodies and are not to be applied in a very rigid and technical manner. . G.Department of Agrarian Reform vs. Regina I. …. 161910. June 17. Ma. et al.. Samson.

Finality and Enforcement of Decisions


Execution shall issue upon a decision that finally disposes of the case. Such execution shall issue as a matter of right upon the expiration of the period to appeal there from if no appeal has been fully perfected. (Section 1 Rule XIII, Revised Rules of Procedure)

Finality and Enforcement of Decisions


Notice of Finality of Decisions

there being no appeal or MR filed within the reglementary period. The NFD (Form 7) shall be issued by the authorized COA official to agency head to notify that a decision has become final & executory. if not appealed. 2) . shall become final & executory.NOTICE OF FINALITY OF DECISION (NFD) 1) A decision of the CP. ASB. Director or Auditor upon any matter within their respective jurisdiction.

Lito M. Joseph R. Edna P.00 since correct amount should be P65. Carlito G.NOTICE OF FINALITY OF DECISION (NFD) Republic of the Philippines COMMISSION ON AUDIT JKL City. Lorenzo City Accountant Reference: ND/NC No. Odullo CARLITO G. Gamba – Assessment Clerk II . ABC Enterprise _______________ _____________ ___________ Copy furnished: The Director Local Government Sector . Joseph R.Collection of City License tax in the amount of P63. Failure to pay the same shall authorize the agency cashier to withhold payment of salary and other money due to persons liable in accordance with COA Order of Execution to be issued to the agency cashier. the above named persons liable shall pay the above amount immediately to the agency cashier. Gamba _______________ _____________ ___________ 2. ABC Enterprise – payor . LANDICHO Supervising Auditor PROOF OF SERVICE OF NFD TO PERSONS LIABLE Name Position Received by Date 1. Persons Liable and date 1.700.______________ 3._________________ the Nature of ND/NC .______________ of receipt of ND/NC 2. Landicho GINA H. 2009 NOTICE OF FINALITY OF DECISION (NFD) Hon.889. Metro Manila Attention: Mr._________________ . Lauro T. Accordingly.______________ Please be informed that the above ND/NC has become final and executory. Edna P. Manila Date: December 12._________________ . ODULLO Audit Team Leader Gina H. Paras City Mayor JKL City.189. Date of NC Amount .00 which was deficient by P2. License Division .00. Santos _______________ _____________ ___________ 3. there being no appeal filed within the reglementary period. Santos – Chief.

General Counsel or Commission Secretary as provided under Section 22. par 1 may be restated as follows: Please be informed that the decision of the Director/ Adjudication and Settlement Board/Commission Proper No.If decision of the Director/ASB or CP attains finality. A copy of the CFD issued by the Commission Secretary shall be furnished the General Counsel) . __________ dated _________ has become final and executory in the absence of an appeal filed within the prescribed period.3 of these Rules. (Signatory shall be the Director. The said decision affirmed the above ND/NC.

General Counsel for ASB decision. Director for ND/NC issued by SAT under his supervision.NOTICE OF FINALITY OF DECISION (NFD) 3) Signing Authority: • • • • • ATL & SA for their ND/NC. Commission Secretary for CP decision 4) Addressed to the Agency Head. Director for his decision. Attention: the Chief Accountant & shall indicate the particulars of the COA decision that has become final & .

6) . on the basis of the NFD.NOTICE OF FINALITY OF DECISION (NFD) 5) A copy shall be served by the Agency Auditor on the persons liable or their authorized representatives who shall indicate their printed name & signature & the date of receipt. The Chief Accountant shall. record the disallowance/charge as a receivable.

Finality and Enforcement of Decisions b) COA’s Order of Execution .

whenever the persons liable refuse or fail to settle them after the decision become final & executory. .COA Order of Execution (COE)  COE (Form 8) is issued to enforce the settlement of disallowance/charge.

GHI Corp. Cluster C Corporate Government Sector . Mr. Research Division . 2008 Nature of transaction . Sandra P. General Services . Manalili Ms. Unciano – Property Inspector .___________ 3.. Jose L. 2009 ND No.COA Order of Execution (COE) Republic of the Philippines COMMISSION ON AUDIT Office of the General Counsel Date: July 20. Manila Attention: Ms.826.Payment for sports equipment under DV No.July 5. 2010 COA ORDER OF EXECUTION (COE) Mr. Gloria G.07-25 dated 5/28/2006 in the total amount of P142. 2006 Amount . GHI Corp. Sandra P. for the settlement of their liabilities pursuant to the ND/Decision referred to above. Manila The Accountant GHI Corp. The Auditor GHI Corporation. Manila The Director.2009-023 dated March 10. 03. Payment of salaries or any money due them in violation of this instruction will be disallowed in audit and you will be held liable therefore. Jose L. Erlinda Manrique Position _____________ Cashier PROOF OF SERVICE OF COE TO AGENCY OFFICIALS Received by _______________ _____________ Date _______________ Copy furnished: Persons liable: Mr.___________ You are hereby instructed to withhold the payment of the salaries or any amount due to the above-named persons liable. & date . Jardin WILMA C.00 Persons Liable 1. Baylon – Chief. JARDIN Assistant Commissioner General Counsel Name 1. Romeo Formoso President.00 Date of NFD .___________ 2. & date .P42. Erlinda Manrique Cashier Reference: CP/ASB Decision No. Ms. Gloria G. Roxas Blvd. Unciano Ms. Manalili – Chief.06-051-101-05 dated July 14. Romeo FormosoPresident. Baylon All of GHI Corp.. copy attached and made an integral part hereof.000. Wilma C. 2.

COA Order of Execution (COE)  COE shall be approved not earlier than 5 days from receipt of the NFD by the agency head. by the following: • Director – for NFD issued by him or by the Auditor. or for judgment rendered by the SC • . General Counsel – for NFD issued by him or by the Commission Secretariat.

. Attention: the Cashier/ Treasurer.COA Order of Execution (COE)  Addressed to the agency head. & shall indicate the NFD. the particulars of the decision being enforced & the persons liable.

Unsettled COEs shall be referred to the GC for appropriate action. including referral to the OSG & the Ombudsman. .COA Order of Execution (COE)  The Auditor monitor the implementation of the COE & report to the Director the action taken by the agency.

Non-Compliance with the COE Section 3. . the Auditor shall report the matter through the COA Director concerned.In case of failure by the Cashier/Treasurer/Disbursing Officer to comply with the COE. to the General Counsel who shall take any or all of the following actions: – – – Recommend to the Commission Proper to cite defaulting party in contempt. Refer the case to the Ombudsman for the filing of appropriate administrative or criminal action. At the same time. the Auditor shall notify the agency head concerned of the non-compliance. . Refer the matter to the Solicitor General for the filing of appropriate civil suit. Non-compliance with the COE.

The LSS shall study and evaluate the report of such non-compliance as cited in the preceding section and submit its recommendation to the Commission Proper within fifteen (15) days from receipt thereof (Section 4 Revised Rules of Procedure) .Remedies for Non-Compliance with the COE Section 4. Holding the Defaulting Party in Contempt. Rule XI of these Rules. – Any party who fails to comply with the COE may be held in contempt pursuant to Section 2.

A person guilty of misbehavior in the presence of or so near the Commission Proper or any of its members as to obstruct or interrupt the proceedings before it or them. including disrespect toward the Commission or its members.(Section 1 Rule XI. may be summarily adjudged in contempt by the Commission or any of its members and shall be punished in accordance with the penalties prescribed in the Rules of Court. Revised Rules of .Remedies for Non-Compliance with the COE Section 1. or to subscribe to an affidavit or deposition when lawfully required to do so. Direct Contempt Punished Summarily. offensive personalities toward others or refusal to be sworn or to answer as a witness.

Indirect Contempt. Disobedience of or resistance to a lawful writ. process. order. Any abuse of or any unlawful interference with the process or proceedings of the Commission or any of its members not constituting direct contempt under Section 1 of this rule. directly or indirectly. or degrade the administration of justice .Remedies for Non-Compliance with the COE Section 2. to impede. a person guilty of the following acts may be punished for contempt: – – – – Misbehavior of any officer of the Commission in the performance of his official duties or in his official transactions. Any improper conduct tending. and after an opportunity shall have been given to respondent to be heard by himself or counsel. – After a charge in writing has been filed by an aggrieved party before the Commission Proper or its members. judgment or command of the Commission or any of its members. obstruct.

Revised Rules of Procedure) .(Sections 2 and 3. the accused may be punished in accordance with the penalties prescribed in the Rules of Court. If adjudged guilty. Penalty for Indirect Contempt.Remedies for Non-Compliance with the COE Section 3.

Referral to the Solicitor General. . Referral to the Office of the Solicitor General for its appropriate action may be made. together with all necessary documents for the filing of the appropriate civil suit. Revised Rules of Procedure) . the Auditor shall submit to the Director concerned a report on COEs which have not been complied with. and the payrolls/vouchers disallowed and collections charged.To enforce civil liability. Rule XIII.Remedies for Non-Compliance with the COE Section 5. The report shall be duly supported with certified copies of the subsidiary records. The Director shall forward the report to the General Counsel who shall study and evaluate the same and submit his recommendations to the COA Chairman within fifteen(15) days from receipt thereof. (Section 5.

He shall then refer the matter to the Legal Services Sector who shall refer the matter to the Office of the Ombudsman or other appropriate office for the possible filing of appropriate administrative or criminal action. identifying among others. . The COA Director shall see to it that the report is supported by the sworn statement of the Auditor concerned. Referral to the Ombudsman.The Auditor shall report to his Director all instances of failure or refusal to comply with the decisions or orders of the Commission contemplated in the preceding sections. the persons liable and describing the participation of each. .Remedies for Non-Compliance with the COE Section 6.

and/or administrative disciplinary action against the officer or employee concerned.Any delay in complying or refusal to comply with the order or decision of the Commission shall constitute a ground for contempt. . Effect of Noncompliance.Remedies for Non-Compliance with the COE Section 7. .

The Omnibus Rules Implementing Executive Order 292 and COA Memorandum No. (Section 1.Remedies for Non-Compliance with the COE Section 1. Applicability of Civil Service Law and Other Rules. . 76-48. Rule IV of the Revised Rules of Procedure) . are hereby adopted and read into these rules. in administrative cases against officers and employees of the Commission.The procedures set forth in the pertinent provisions of the Civil Service Law.

Dropping from the Books of Accounts of Settled ND/NC  Recorded final disallowances/charges w/c are settled shall be dropped from the books upon receipt by the Accountant of the NSSDC (Section 24 Rules and Regulations on the Settlement of Accounts) .

NFDs & COE issued & the NSSDC. The Director & the LSS Ascom shall keep copies of the Decisions rendered by their respective offices. decisions on appeals. & the NFD & COEs.Record of COA Decisions (ROCD) 1. . appeals taken. Maintained by the Auditor showing the ND/NCs issued. 2.

Record of COA Decisions (ROCD)  The Director. & NFDs & COEs. . LSS Ascom & Commission Secretary shall ensure that the Auditor is furnished w/ copies of their decisions. to update the ROCD.

. In no case shall finally settled accounts be opened or reviewed by COA. voucher or other papers connected w/ the matter be forwarded to it. It may require any account.Opening/Revision of Settled Accounts 1. except on the following before the expiration of the 3 years after the settlement of any account: a) motu propio review & revise the account or settlement & certify a new balance.

may certify thereon a new balance. & a new balance is certified in accordance w/ Sec. collusion. the aggrieved party may appeal in accordance w/ Rule IV of RRSA. . 52 of PD 1445.Opening/Revision of Settled Accounts b) 2. Open the account when appearing to be tainted w/ fraud. & after a reasonable time for reply or appearance of the party concerned. An Auditor may exercise the same upon prior authorization of the COA Chairman. or when new & material evidence is discovered. or error of calculation. If a settled account is re-opened/ reviewed.

Stay in love with GOD… .Do good… 3.As Accountants – Let us consider 3 simple rules….Do no harm… 2 . 1 .



Sign up to vote on this title
UsefulNot useful